Global Carbonated Beverages Market – Industry Trends and Forecast to 2031

Carbonated Beverages Market Analysis and Size

The global carbonated beverages market continues to be a significant segment of the beverage industry, driven by factors such as changing consumer preferences, lifestyle trends, and marketing strategies by key players. Carbonated beverages remain popular despite concerns over health and wellness due to their refreshing taste and wide availability. The market is characterized by a wide range of products, including carbonated water, soft drinks, energy drinks, and flavored sodas, catering to diverse consumer preferences. The trend towards natural and organic ingredients is influencing product development in the carbonated beverages market, with a focus on natural sweeteners and flavors.

The global carbonated beverages market size was valued at USD 4.01 billion in 2023 and is projected to reach USD 5.49 billion by 2031, with a CAGR of 4% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Carbonated beverages are drinks that have been infused with compressed carbon dioxide to create effervescence or fizz. They typically use soda water or carbonated water as a base, to which sweeteners, flavors, and other ingredients are added. The combination of water and carbon dioxide produces carbonic acid, which creates a tingling sensation when consumed. Carbonated beverages come in various types, including carbonated water, tea, smoothies, juices, and more.

Carbonated Beverages Market Dynamics

Drivers

• Changing Consumer Preferences       

Consumers today are increasingly seeking convenience and refreshment in their beverage choices, leading to a growing preference for carbonated beverages. These beverages offer a wide variety of flavors, innovations, and unique experiences that cater to diverse consumer tastes. Whether it's the classic cola flavor or exotic fruit blends of carbonated fruit beverages, carbonated beverages provide a refreshing option for consumers looking to quench their thirst and enjoy a flavorful drink. The changing preferences of consumers significantly influence the demand for carbonated beverages.

• Urbanization and Rising Disposable Income 

As more people move to urban areas, there is a shift in lifestyle and consumption patterns. Urban consumers tend to have higher purchasing power and are more inclined to spend on premium and indulgent products, including carbonated beverages. The wide availability of carbonated beverages, ranging from popular brands to niche and artisanal selections, caters to the diverse preferences of urban consumers. In addition, rising disposable incomes enable consumers to afford these beverages more frequently, further driving market growth.

Opportunities

• Innovation in Flavors and Packaging    

Manufacturers are constantly introducing new and exciting flavors to cater to changing consumer preferences and to differentiate their products from competitors. This innovation extends to ingredients as well, with a growing emphasis on natural and healthier options, such as using natural sweeteners and fruit extracts. Packaging formats also play a crucial role in attracting consumers, with manufacturers experimenting with sleek and modern designs, sustainable materials, and convenient packaging solutions. These innovations not only keep the market dynamic but also help attract consumers looking for unique and novel beverage experiences.      

• Marketing and Advertising Impact     

Key players in the industry invest heavily in marketing campaigns to promote their products and differentiate themselves in a crowded market. Creative campaigns, celebrity endorsements, and strategic product placements are used to create a strong brand image and connect with consumers. These efforts are crucial in driving demand for carbonated beverages, as they help create a strong brand presence and influence consumer perceptions and preferences. Marketing and advertising are essential components of the carbonated beverage industry, creating new opportunities in the market and brand awareness and influencing consumer purchasing decisions.

Restraints/Challenges

• Health Concerns Impact   

The heightened awareness has prompted a shift in consumer preferences towards healthier alternatives, impacting the sales of traditional carbonated beverages. Consumers are now seeking beverages with lower sugar content or opting for alternative options such as non-carbonated beverages, flavored water, or natural fruit juices. This shift in consumer behavior is driving manufacturers to innovate and develop healthier carbonated beverage options to meet changing consumer demands. The carbonated beverages market faces a significant challenge due to the growing awareness of health risks associated with sugary drinks, including obesity and diabetes. 

• Regulatory Pressures Impact     

The carbonated beverages market is under increasing regulatory scrutiny, particularly regarding sugar content, labeling requirements, and environmental sustainability. Regulatory pressures have led to the implementation of stricter regulations, such as sugar taxes and mandatory labeling of sugar content on packaging. Compliance with these regulations can be costly and time-consuming for manufacturers, who may need to reformulate products or invest in new packaging solutions. In addition, environmental sustainability regulations require manufacturers to reduce single-use plastic packaging and adopt more eco-friendly alternatives. These regulatory pressures pose challenges for the carbonated beverages market.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In December 2023, in response to the growing demand for sugar-free beverages driven by increased health awareness in Japan, Kirin introduced its Tokusei Ginger Ale Sour and a range of sugar-free tea products, including black tea and Hojicha. These new offerings are exclusively available in the Japanese market as of 2023
• In October 2023, Coca-Cola unveiled Coca-Cola Y3000, a new beverage developed with the assistance of artificial intelligence. This latest limited-edition flavor is part of the Coca-Cola Creations platform, showcasing the brand's innovative approach to product development

Carbonated Beverages Market Scope

The market is segmented on the basis of type, drinks, and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Standard
• Diet
• Fruit Flavoured Carbonates
• Others

Drinks

• Soft drinks
• Sparkling drinks
• Functional drinks

Distribution Channel

• Hypermarkets/supermarkets
• Specialty Store
• Convenience Stores
• Online Stores
• Other

Carbonated Beverages Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, type, drinks, and distribution channel as referenced above.

The countries covered in the market are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, rest of Middle East and Africa, Brazil, Argentina, and rest of South America.

North America is expected to dominate the market and show significant growth due to rising demand for prepared meals and refreshments. The region's inclination towards convenience and ready-to-eat options is fueling the demand for carbonated beverages, contributing to North America's prominent position in the market.

The country section of the report also provides individual market-impacting factors and changes in market regulation that affect the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, Porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Carbonated Beverages Market Share Analysis

The market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, regional presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus on the market.

Some of the major market players operating in the market are:

• The Coca-Cola Company (U.S.)
• PepsiCo Inc. (U.S.)
• Britvic Plc (U.K.)
• SUNTORY BEVERAGE & FOOD LIMITED. (Japan)
• National Beverage Corp. (U.S.)
• ASAHI GROUP HOLDINGS, LTD. (Japan)
• Tru Blu Beverages (Australia)
• F&N Foods Pte Ltd. (Singapore)
• Bickford's Australia (Australia)
• Parle Agro Pvt. Ltd. (India)
• Laihian Mallas (Finland)

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